Teesside car parts manufacturer ElringKlinger UK said it is on course to double its turnover within five years after a 38% lift in sales took turnover past £20m in 2014.

Redcar-based Elringklinger GB – the UK arm of the multinational company headquartered in Germany – is one of the few businesses that grew sales during the economic downturn.

The firm produces sealing and shielding modules for brands including Ford, Jaguar Landrover, BMW and Honda.

Last year, managing director Ian Malcolm set the business the task of taking turnover from its existing revenue of £14m to £35m within five years, and the firm said its growth plans are well on target following a year of investments in people, machinery and new contract wins.

Total revenues rose from £14.8m in 2013 to £20.4m, while operating profits fell from £2.117m to £1.802m as a result of the investments and recruitment drives.

Headcount rose from 150 to 192 over the period, an increase which took the wage bill up to £5.27m from £4.08m.

Gross profit rose to £4.6m from £4.5m but profit margin percentage dropped to 23% from last year’s 30%, largely due to the large increase in tool sales with little or no margins.

In the accounts report, managing director Ian Malcolm said: “The company has continued to recover from the global economic downturn and as shown in the company’s statement of comprehensive income, revenue for the year has increased by 38% from the previous year, with product sales up 28% against 2013.

“Operating profits has decreased by 15% compared to 2013 as the company begins to recruit and plan for the future projected growth.

“Some of the benefits of the growth will be seen in 2015 but the full impact of these change will not be seen until 2016.

“The introduction of new technologies both to new and existing customers has allowed the business to develop and grow with some significant orders already obtained.

“These along with other projects being worked on mean that the company is on target to achieve its previously mentioned expansion plans.”

Since the year end the firm has announced further job creation after securing new contracts worth more than £60m over the next seven years with existing customer Jaguar Land Rover, a deal which has involved a £6m investment in new machinery.

The additional work seals a long-standing relationship with Jaguar Land Rover and involves the design and manufacture of unique heatshields and engine gaskets for the motor group’s newest engine plant in Wolverhampton.

A new press has been installed specifically to support the development of the project, which will lead to a further 20 jobs created during 2015, across all levels of the business.

Mr Malcolm added: “I recently set us a target to double turnover from £17m to £35m in the next five years – when you consider that in 2009 that number was £8.5m it’s clear to see how far we have come.

“Things are very positive for us on Teesside at present, we are continuing to recruit across all levels and our projects pipeline is looking healthy.”